Building your Dream Achiever Portfolio


Saving money is hard. If by working hard you are able so save some money  investing it intelligently to get good returns that align with your dreams is nearly impossible. At Croudify we are here to help.

If you go by default choice of many consumers and put your hard earned money in a savings account you will get a measly return of 0.01 – 0.06% . This means if you Save $10,000 and put it in a savings account you will get a total of $6 in returns (at top return rate). This return ensures that to achieve your dream you have to work even harder and there is really nobody helping out in your journey.

We at Croudify help you invest this money in Consumer Loans as available on Lending Club. These loans have historically provided returns in the range of  4-6% *. This means the same $10,000 put in loan portfolio will return $600 in a year at the top range. This means thousands of savings (through better returns) and a big helping hand to achieve your dream.

To find and build your dream portfolio we take three things in account.

  • Your Dream
  • Your Risk Profile (Your capability to take risk)
  • Your Portfolio Size
  • Dream Duration (time to achieve your dream)

A combination of these three provides us a good picture about you as a person and what kind of loans will make it to be a balanced portfolio to achieve your dream.

Finding Dream Portfolio


Your dream is the biggest determinant in the suitable portfolio we choose for you. There are three broad goals and all three determine the starting security choice for us.

  • Supplemental Income: For supplemental income goals the steady returns need to be achieved on a monthly basis so we cannot have much volatility in the portfolios and hence we choose extremely conservative non volatile assets.
  • Fulfill Desires: Fulfill desires are medium term dreams where a dream can be achieved between 3-10 years. In this scenario we have some flexibility in the form of volatility of returns and we can invest in slightly more volatile & high risk assets.
  • Long Term Growth: For portfolios looking for long term growth (usually > 5 years) we have the most flexibility and we can start with riskier portfolios. Once you have chosen this option your risk profile plays are more important role in determination of your portfolio than the goal (unlike other two choices).

Risk Profile

Your Risk profile is usually the most important step in finding a suitable portfolio for you, but as described above your goal can override it sometimes. You risk profile tells us about your risk taking capacity (both emotionally and financially). We identify your risk profile using the following criteria

  • Your Age
  • Your Income
  • Your Savings
  • Your Answer to our Risk Related questions

We use a combination of these answers to assign a suitable risk profile bucket to you. This bucket is a relative risk bucket where highest risk score is given to someone who can take maximum risk and lowest score is given to the most risk averse investor.

With Goal as an overriding factor basically our risk profile filed slightly shrinks for the Income and Dreamer goals, for Long term growth the whole portfolio is determined using your risk profile.  Once we have determined your risk profile, your portfolio size and duration are used to adjust these slightly up and down, but the risk profile is the anchor and things after it are used to make more qualitative adjustments.

Portfolio size

Your portfolio size also plays an important role in determining what kind of assets we choose for building your portfolio.  Here law of averages plays an important role, if we can buy a lot of loans in your portfolio we can get control of the volatility for even extremely volatile assets and give you a steady return, vs for small portfolios we can only choose extremely stable portfolios.

The chart below was generated by running 1 million simulations for different portfolio sizes. We chose a single asset type for building all the portfolios and invested equal amount in all the loans.

The similar quality of loans is clear from the Average Return column where we expect similar returns for most of the portfolio sizes, but what is interesting is the volatility column. If you invest in only 5 loans your volatility is more than 100% of your average returns. This means that you can expect to get negative returns (loose money) in certain scenarios. On the other side if you have a portfolio of 100,000 loans. In this scenario your portfolio returns are quite stable with less that 2% of relative volatility of returns.

Thus, if you are investing less that US $10K then the maximum loans we can buy are 400 ($25 each in a loan). At 400 loans we are mostly restricted to high quality loans and our expected returns are slightly lower. On the other hand if you are investing north of $1 MM we can build a portfolio that has a combination of  less and more risky loans and give higher stable returns.

Dream Duration

In our last step in qualitative adjustment is the duration of your dream. It is an important step in choosing the duration of the assets we invest in. It also plays a role (minor) in your asset allocation. The Duration is only important for the “Fulfill Desires” piece and not any other Dream. For fulfill desires if your dream is shorter than 5 years then we have to make some adjustments to the portfolio, outside that there is not much impact of the duration on the final portfolio configuration.


Investing in Dream Portfolio

Once we have determined your dream portfolio that matches your dream the next step is doing the investing to get the expected returns and get you started towards your journey. We do that in four steps

Creating Account

Account creation is the first step in starting your journey. We open your individual account with at-least one lender “Lending Club” to get you started. There is a possibility we will add more lenders as your portfolio grows, but that will come later.

Our site uses bank level security   on our site and all your information is completely secure at any given moment. You can learn more about it in our Tutorial

Withdrawing Money

Once you have opened your account and linked a bank account with it you can relax from that point, we take over from that point. We will automatically withdraw the amount that you have said you are going to invest today to get started. We will also automatically withdraw the monthly payment from your bank account within first 5 business days of each subsequent months.

While the withdrawal is all automatic we will still send out emails 2 business days prior to the withdrawal. If for any reason you want to change the amount or defer any withdrawal you can do so at that point by replying to that email (Changing amounts or withholding payments might make it harder to achieve your dreams)


Build & Re-Balance Portfolio

We will take the money you have deposited with us and automatically build the proposed portfolio. We will do it initially and after every month using advanced algorithms. If the portfolio goes out of balance due to some performance reasons we will automatically re-balance it to get your ideal portfolio.

While we use the new cash and cash generated from the portfolio to re-balance every day we will also do sales of some loans every quarter to achieve the desired portfolio. Since sales is a commission oriented process and is detrimental to your overall returns we initiate this process only if more than 10% of portfolio is out of balance and needs severe steps.

We will automatically sell non or under performing loans and re-balance the portfolio outside the quarterly re-balancing process.


Liquidate and Return Money


If your dream is to “Fulfill Desires” we will invest till we are able to achieve the desired money goal for your desired dream. Once the goal is achieved we will send you an email to ask for your permission to liquidate the portfolio and return the money. At that point you can choose what course of action you want to take (options will be spelled out in the email).

For other two dreams since there is no fixed term you can email us at “” to initiate the liquidation of your portfolio and get your money back.


Start The Journey

We are excited to start this journey of your dreams and are looking forward to help out in any way we can to make this dream come true. Please email us at “” if you need to talk to someone.


Disclaimer:  LendingClub Notes are offered by prospectus filed with the SEC and you should review the risks and uncertainties described in the prospectus prior to investing in the Notes. Croudify is not a registered investment adviser, and the information provided is not intended as investment, legal, or tax advice. LendingClub Notes are not insured or guaranteed and investors may have negative returns. Historical Returns are not a promise of future results. Consult with your investment or financial advisor prior to investing.

Also published on Medium.

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